Blaine Business and Occupation Tax (B&O Tax)

The Blaine City Council passed an ordinance for a Business and Occupation tax at its March 25, 2019 meeting. The final ordinance was the result of a collaborative effort with businesses and community members to fund vital city services.

It calls for a 0.2% (two tenths of one percent) Business and Occupation tax on most businesses with annual gross receipts of more than $250,000. Businesses providing medical services, or food and accommodation services are exempt. New businesses or startups that bring 25 or more full-time jobs into the city would qualify for a tax credit over three consecutive years. The collection of the tax takes effect on January 1, 2020.

Revenue from the Business and Occupation tax will be used for public safety improvements (such as an additional police officer, patrol car replacement and a faster 911 system) and economic development to help manufacturing and wholesale businesses find and retain workers. A portion of the proceeds also will go toward parks and facilities maintenance.

In 2018, the Blaine City Council instructed staff to prepare information about a possible Business and Occupation tax to fund city services. Council scheduled two study sessions and two public hearings on the issue where input was taken from businesses and members of the community. The ordinance was revised and passed at a third public meeting.

The city will spend the next few months working out process and implementation procedures to assess and collect the tax. Further communication will be provided in writing to businesses and on this web page as to how the ordinance will be implemented prior to the January 1, 2020 start date.

Questions about the ordinance can be directed to Jeff Lazenby, City Finance Director at (360) 332-8311 ext. 3305 or jlazenby@cityofblaine.com.